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August 17, 2004

Tips for Teaching Kids About Money

Put children on commission
instead of an allowance-Reward your children for completing
jobs around the house by giving them a commission. The amount
of money depends on how much work is finished.

Make a spending chart-You and your child should decide how
to spend and save his or her money. A certain percent should be
saved and a percent should be given away to a charity or
church.

Teach kids about the negative effects of credit and being
in debt-only allow children to pay cash for the items they want
and need. Explain to them that being in debt means you have to
work more to pay the money you owe.

Set goals on how much money to save to buy things with
cash-Working to buy things gives kids more pride in
themselves.

Spend money wisely-teach children that spending money on
items that last is a better investment than buying items that
do not such as candy.

Offer non-monetary rewards for exceptional work-when your
child does an extra job or does a job well, let them make
decisions like what to eat for dinner or the family
activity.

Start saving for college or trade school-the sooner you
start to save the better.

*These are lessons best learned as a kid, and once mastered
will lead to a lifetime financial peace and 'freedom'.

Provided by Dave Ramsey

Dave Ramsey hosts the nationally syndicated radio call-in
program "The Dave Ramsey Show" and has authored three
best-selling books:
The Total Money Makeover,
Financial Peaceand
More Than Enough. For more information visit
www.daveramsey.com.